An E-Procurement Overview Department of Administration Division of - - PowerPoint PPT Presentation

NC E-Pro Procur cureme ement @ Y Your ur Service vice

An E-Procurement Overview

Department of Administration

Division of Purchase and Contract

Presented to

House Select Committee on E-Procurement

February 15, 2012

Sam Byassee State Purchasing Officer Direct line: 807-4533 sam.byassee@doa.nc.gov

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E-Procurement Statutory Authority

§ 143-48.3. Electronic procurement.

• Electronic procurement system mandate
• Co-operation of ITS
• University and Community College opt-out until May 2003

§ 66-58.12. Agencies may provide access to services through electronic and digital transactions; fees authorized.

• Fees approved by OSBM
• Revenue into agency reserve account
• Use only for e-commerce initiatives and projects, with approval
• f State CIO and consult. With Joint IT Oversight

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Electronic Procurement System:

The technology that supports the services

• Ariba Buyer (electronic purchase orders)
• e-Quote marketplace
• Vendor Registration
• IPS (Interactive Purchasing System) – RFP/IFB posting

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e-Procurement Operation Timeline

Initial implementation Contract amendment (resolve $ loss due to underuse) Contract amendment (fixed fee) Upgrade Expiration

• Oct. 2001 Jun. 2004
• Oct. 2009 Jul. 2012 Dec. 2012

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System Usage

• 234 different NC entities now use E-Procurement
• 30 state agencies
• 16 institutions and hospitals
• 58 community colleges
• 115 K-12 local school systems (LEAs)
• 15 local governments
• More than 14,000 total users
• More than 45,000 registered vendors

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41% 26% 10% 23% 0% 0%

NC E-Procurement Spend FY08-FY11

NCAS State Agencies

• Dept. of Transportation

Community Colleges K-12 Local School Systems (LEAs) Local Governments Universities/Colleges

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Supporting Applications Ariba Interfaces

• IPS
• eQuote
• Vendor Registration
• Reporting
• NCAS
• SAP
• Community Colleges
• LEAs (4)

Total of 178

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Procurement Functions

• Vendor search
• eRequisitions
• Catalog search
• Approval flow
• eQuote

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Management Functions

• Vendor registration
• Workflow management
• Compliance and accountability
• Data aggregation and reporting

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Electronic approval flow facilitates an effective procurement approval process for the State. It allows procurement professionals to focus on more critical strategic initiatives, while it facilitates the proper authorizations before goods and/or services are purchased.

Purchasing Agent Commodity Approver On Behalf Of Watcher Rule Supervisor (Starts Mgmt Chain) CPO Financial Approver

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Compliance and Accountability

• procurement method field requires justification at the line item

level of basis for purchase (from designated vendor at designated price) e.g., State Term Contract, agency bid, eQuote, sole source, etc…

• Approval process automatically generated from Agency rules

(based on dollar thresholds, agency management structure, commodities, and State oversight rules)

• audit trail (what is changed about any requisition by whom and

at what time

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High Level Purchasing Flow

Consolidate & Report Receive Items/ Services Issue Purchase Order Approve Requisition Create Requisition

Data Aggregation and Analysis Compliance and Accountability Through Process Control

 Shop State Term Contract catalogs  Conduct on- line quotes  Record formal solicitation results  Rules based on:  $$ amount  Type of purchase  Contract source  Source of payment  Agency purchasing

• versight

 Statewide purchasing

• versight

 Purchase

• rder issued

electronically  All details of steps from requisition to purchase

• rder retained

 Receipts compared against purchase

• rder before

payment  All data consolidated for effective analysis of purchasing patterns

Confirm Fund Availability

 Check for fund availability against designated accounting code

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House Select Committee on e-Procurement February15, 2012

Ariba Buyer NCAS

Pre- Encumber Funds Generate PO Encumber Funds Create Receipt Create Invoice Funds Drawdown Pay Supplier Submit Requisition Dispatch PO Supplier Need for items Create Requisition Fax Email ASN Available requisition options are:

• State Contracts (Catalogs)
• Punchout Websites
• eQuote
• Non Catalog

Nightly Updates Vendor Master Vendor Registration Approved Orders, Cancellations & Changes Approve Requisition Vendor Staging Adjust Pre- Encumbrance Requisition Changed Requisition PO Asynchronous Asynchronous Asynchronous Receipt Accounting Information Accounting Information

Ariba Buyer / NCAS Data Transfer

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House Select Committee on e-Procurement February15, 2012 Ariba Buyer NCAS

Pre- Encumber Funds Generate PO Encumber Funds Create Receipt Create Invoice Funds Drawdown Pay Supplier Submit Requisition Dispatch PO Supplier Need for items Create Requisition Fax Email ASN Available requisition options are:

• State Contracts (Catalogs)
• Punchout Websites
• eQuote
• Non Catalog

Nightly Updates Vendor Master Vendor Registration Approved Orders, Cancellations & Changes Approve Requisition Vendor Staging Adjust Pre- Encumbrance Requisition Changed Requisition PO Asynchronous Asynchronous Asynchronous Receipt Accounting Information Accounting Information

Ariba Buyer / NCAS Data Transfer

Electronic Bids Electronic Document Repository Electronic Payments Business Intelligence/ Spend Analysis

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System Demo

System Demo